A gambler who trusts the casino will comply with the rules implemented by the casino so that they can continue the verification process and also the money withdrawal process. And the casino also knows this and will immediately complete all the processes. But shady casinos won't do it because they don't care about the comfort of their customers or the regulators. That is the reason why many gamblers are always careful in choosing a casino so they can avoid problems.
And yes, it would be best if the authorities could provide guarantees to players who can win big wins to help those players get them. Players will also always try to follow the rules of the casino so that they can gamble comfortably and calmly.
You do not take into account those players who, for various reasons, cannot de-anonymize their identity and, accordingly, provide the casino with their passport details, including their place of permanent residence. Also, many people understand that the personal data provided to any site, which is considered confidential information almost all over the world, and access to this data is limited. So, all this data, when it ends up on a third-party site, for example, a casino, still ends up in the public domain over time. This happens in a large number of cases due to theft or unauthorized sales of personal data databases. I would not say that such people should be classified as some kind of second-rate category of players compared to those who are required to provide KYC everywhere.
So I say that the state is obliged to provide guarantees of quality service for such citizens, and not just those who around the world recklessly and without thinking about the consequences send out their personal data anywhere.
And this data has already been stolen many times and appears on the darknet or even just on the Internet.